Overview

In previous modules, you examined the initial stages of the accounting cycle and practiced journalizing financial transactions. In Milestone One, you will complete the first part of your course project to demonstrate your ability to accurately record financial data, which will continue to be used to complete other parts of the project.

Scenario

You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide to you. Because this is a small business that does not use computerized accounting, you will apply the accounting cycle in Excel to record transactions and generate financial reporting results for the owner.

Prompt

Record Financial Data: Use accepted accounting principles to accurately capture business transactions for the month in the Company Accounting Workbook Template using the data provided in the Accounting Data Appendix document.

Specifically, you must address the following rubric criteria:

• Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate information.
• Completeness: Prepare entries that are complete for each month, including transferring posted entries to T accounts.
• Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance tab of the company accounting workbook, ensuring that the total debits and credits match.

The following events occurred in June:

• June 1: Owner contributed $50,000 in cash to the business.
• June 1: Owner purchased a company vehicle in the amount of $15,000.
• June 3: Owner took out a small business loan in the amount of $25,000.
• June 5: Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month.
• June 5: Owner paid business license fees in the amount of $250 to the county.
• June 5: Owner ordered office supplies, on account, in the amount of $750.00.
• June 6: Owner performed service for client on account in the amount of $1,000.
• June 9: Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due.
• June 10: Owner paid $250 in advertising costs to the local paper.
• June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20.
• June 15: Owner prepaid business insurance to cover July through December at the rate of $125 per month.
• June 20: Owner paid wages due to part-time employee from period ending June 15.
• June 21: Owner paid for plumbing repairs in the office in the amount of $210.
• June 22: Owner withdrew $1,000 cash for personal use.
• June 23: Customer paid balance due from June 6 service in the amount of $1,000.
• June 25: Owner provided service to client in the amount of $800. Client paid at time of service.
• June 28: Owner paid balance due for office supplies purchase on June 5.
• June 29: Owner performed service for client on account in the amount of $2,225.00.
• June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July.
• June 30: Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5.
• June 30: Record depreciation on vehicle at $250.

	A Company
	Closing Entries
	Month ending 06/30/20XX
Date	Accounts	Debit	Credit
30-Jun
	Close revenues
30-Jun
	Close Expenses
30-Jun
	Close Income Summary
30-Jun
	Close Dividends
		-	-

		A Company
		Balance Sheet
		As of June 30, 20XX
Assets				Liabilities and Owners' Equity
Current Assets:				Current Liabilities:
				Total Current Liabilities	-
				Long Term Liabilities:
Total Current Assets	-			Total Long Term Liabilities:	-
				Total Liabilities:	-
				Owner's Equity
Non-Current Assets:
				Total Equity	-
Total Non Current/Fixed Assets	-
Total Assets:	-			Total Liabilities & Equity	-	<== Total Assets on the left should equal Liabilities + Owner's Equity on the right.